Late summer bookings in the UK help keep Thomas Cook turnaround on track as it posts £33million quarterly profits

A long-term strategy to turnaround the fortunes of Thomas Cook appeared to be on track today as the tour operator reported a boost in quarterly underlying profits to £33million.

A last-minute surge in late UK summer bookings accounted for three-quarters of the profit rise in the three months to 30 June, which compares to meagre £1million profit during the same period last year.

Despite this, overall sales for the group actually fell 5.7 per cent to £2.2billion due to lower selling prices and a rise in people taking shorter holidays.

Reasons to be happy: UK tour operator Thomas Cook has experienced a change in fortunes, posting quarterly underlying profits of £33million in the three months to 30 June

However, the company remained upbeat and said its operating performance was in line with internal expectations for the full year and forecast 'more value' in 2015 and beyond.

In the UK, the firm said summer bookings were 85 per cent sold, similar to last year, while prices were 4 per cent down reflecting customer demand. It added that the late booking market in the UK had 'improved significantly.'

Thomas Cook said it expects its average holiday prices to rise over the medium term as it extends its range of higher value exclusive hotels to UK customers, which it expects to have a 'meaningful impact' on prices over the next year.

The business said that winter bookings in the UK were 7 per cent up on a year ago, with selling prices up 3 per cent.

Across the group, it said its summer season was 83 per cent sold, which was slightly better than 12 months ago.

Meanwhile, in Northern Europe bookings were 87 per cent sold, which was 4 per cent higher, although average prices were 1 per cent down on last year.

The operator, led by chief executive Harriet Green, is half way through a long-term plan to drive savings and return the group to profit after its near collapse in 2011 as a result of overcapacity in the holiday market.

Green has implemented a raft of cost-cutting measures she claims could save the company up to £1billion by 2018.

In May, Green announced a second wave of cuts worth at least £400million, adding to £460million from the first part of her recovery plan.

But it hasn't all been plain sailing: in 2012, a quarter of a million people decided not to go to Egypt, a top winter sun destination, almost overnight, following an escalation of security problems and warnings from the British Government over political upheaval and continuing violence across the country.

Political disruption in the region continues to hit the business costing it £54million over the last year.

This doesn't appear to have deterred the markets, however, and Thomas Cook's share price was up almost 0.5 per cent, or 0.6p to 12.5p in mid afternoon trading.